Duplicate PAN invites penalty

TNNOct 6, 2006, 11.00am IST

There are various problems related to the permanent account number (PAN), which cause concern among many people. In the past few weeks, the submission of PAN and its various details have occupied the minds of investors. Many individuals face the problem of possessing more than one PAN under a single name. While this may be due to several reasons, it is high time that individuals tackle this issue once and for all.

At regular intervals, disclosures are made about the number of people who have duplicate PAN. These people should ensure that they return their additional PAN to avoid problems. Recently, a deadline was issued to individuals to surrender their multiple PAN, if any. Individuals need to follow a particular process to comply with this requirement.

Discover duplicates

There are many reasons why people end up with more than one PAN. In fact, many people are often surprised to find that the Income Tax Department has issued them more than one PAN. Many of them may have even forgotten the numbers that were issued. This means that many individuals may not even remember that they have more than one PAN.

Hence, individuals should first examine their records, as well as any correspondence with the tax department , to see if they have a duplicate PAN. Further, they should try to remember if they have experienced any of the situations stated below, which may have resulted in a duplicate PAN. The most common situations are related to women. An unmarried woman may have taken a PAN, either because she is working, or has income that requires payment of tax and filing of returns. A PAN is required to be submitted to the employer for tax deduction at source and also at the time of filing returns. However, post-marriage , there may be a change in the residential address, as well as name in several cases. Here, the individual may have applied for another PAN with the changed name. However, if the earlier PAN hasn't been cancelled, the person may land up with a duplicate PAN. Sometimes, financial matters are handled by the male member of the family and the woman may not even know that she has a duplicate PAN.

There's another way by which duplication of PAN may take place. Earlier, the IT Department used to handle the issuance of PAN. At that time, several people had applied to the IT Department for a PAN. However, even after several months, the PAN wasn't issued. Then, the issuance of PAN card was outsourced. So, several individuals applied for a PAN once again under the new system. These individuals obtained their PAN card from the new system, and then they received another PAN from their earlier application, resulting in duplication.

In many cases, individuals made a couple of applications for PAN because there was no development on their first application. As a result, they ended up with duplicate PAN cards.

Penalty

Under the IT Act, no person who has been allotted a PAN can apply for another PAN. A penalty of Rs 10,000 is imposed if an individual fails to meet this condition.

Returning the PAN

Several steps need to be taken to return the duplicate PAN. One of them is to go online and submit the various details regarding the duplicate PAN. Individuals can even go to the ward, where they file their tax returns, and file an application to return the duplicate PAN card. The process may vary in different parts of the country at the local level. But individuals should take the effort to find out the procedure and ensure that they do not continue with their duplicate PAN.